I will continue to link to interesting stories and data on the real estate market. I weed through a lot of them and only try to highlight the ones that have a new take or angle on the situation – good or bad.

One such article is a recent post in the San Diego Business Journal, titled “Real Estate Market Trends Don’t Matter Anymore”.

The writer has a pretty negative view on the state of real estate development and property investment, but he starts to argue that it doesn’t really matter. I wish he had taken this point a bit further in the article because it is a good one.

Simply put, there are opportunities in every market. There are strategies that make money, that provide value and meet the needs of the moment.

Most real estate investors have a choice.

Wait until market fundamentals return to what was going on in the early part of the decade and then do what you did then.

Find out what is working now, and change what you do to match that.

What do you choose?

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There are lots of investors and real estate developers analyzing foreclosed property right now.  The lure of getting a whale of a deal on some prime development land is just too great.  And I personally believe now is the time to be looking, if you do it right.

You can find some home runs out there but you must know what you are buying and have a firm understanding of when the final product will come on to the market and what the demand will likely be at that time.

So if you are looking for that home run, how do you find it?

Well, don’t wait for the home run deals to come to you.  Once articles show up in the paper, like the Hamilton Pool article, odds are there will be too much competition to hit a home run.  (Too many well funded developers will be analyzing this property and putting in competitive bids.)

You have to find the home runs before they are listed and generating publicity and 2 strategies to do that are:

Talk with the banks.  Ask them what real estate are they holding right now – not just what they have listed and are actively marketing. Bank staff are busy and there is often a lag between when a property is foreclosed on and when it is finally listed.  If you are lucky, you will find something that you like and it will never be listed.

Talk with developers.  Many developers are hurting right now.  And nearly all would like to be sitting on more cash.  By contacting them directly you may be able to find some great property that they would consider selling.  If the developer is in real financial trouble, he may have some properties that are in foreclosure and others that are current.  You could negotiate a home run deal on any of those properties if handled correctly.

And don’t be afraid to offer less than what they owe. When the developer brings a willing buyer to the bank, they will listen.  Right now, they have to.

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The FDIC is a major player in the real estate business these days – and getting bigger all the time.

With every failed bank they take over, the FDIC often finds itself owning foreclosed real estate as well. Developments that are half finished or awash in legal battles fill their expanding portfolio. And the FDIC is having a hard time unloading these properties onto the market.

Developing land is a complicated process – a culmination of decisions and actions that eventually lead to a finished product. Developers, engineers, architects, and builders make countless choices over the life of a project and to try and take over midway through is not easy.

Certainly you would want a considerable discount on price in that situation. And as this WSJ article suggests, that is giving the FDIC fits.

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The largest real estate investment trust (reit) in the United Kingdom is announcing better than expected financial numbers this week, with strong talk of even better numbers coming in right now (the present quarter.)

We weren’t seeing announcements like this a year ago. Granted the positive news is more along the lines of “It isn’t as bad as we expected” there is still some actual demand growth happening.

Property Development Source will keep bringing you news good and bad to help you guage what is the state of the real estate development market worldwide.

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Here is a great article, regulators complicit in slow recovery, on how trying to keep the real estate crisis from getting worse is only prolonging the agony.

The article highlight how actions taken to “protect the real estate consumer” also creates a reaction of stifling the commercial real estate owner and preventing market forces from cleaning up the mess.

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I have been noticing promising news and talk in various parts of the country about apartments and rental rates. Many expected apartments to be doing extremely well at this point in the downturn, but transitions take time. Even apartments saw vacancy rises in the early stages of the recession, but the grapevine is spouting a different story these days.

Many developers are actively hunting for apartment land these days. The time table for completing a real estate development project along with the changes in the apartment market is sending a loud signal to take action now.

Proof: Here is a link to a development company that is moving forward on their apartment plans while holding off on other aspects of the development.

One of the most difficult parts of successful real estate development is projecting out demand for your project when it finally comes to market.

Apartment developers are doing that analysis right now and they are seeing enough positives to take action.

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It’s official. The first time home buyer tax credit has been expanded to include long time homeowners as well. Home owners can now get a $6,500 tax credit on a new purchase (certain conditions apply.)

This is good news for the real estate market (and real estate development) as it should spur some additional sales. This will cut oversupply in some areas and reduce the typical time a house sits on the market before closing. All good for stabilizing home prices and furthering the recover.

Here are the details.

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As you may or may not know, much of Asia has been going through a real estate development and pricing boom the past few years.  The global financial crisis was merely a speed bump to ever rising prices in places like Singapore, Hong Kong, parts of India, Australia and China.

But is it going to last?

And when it stops, will it level off, or will the bubble burst with scenarios we now know all to well.

Many feel real estate prices have gone too far to fast, with real estate development outpacing future demand.

An sound article over at Seeking Alpha tells more of the story

UPDATE: The New York Times goes into further detail about Singapore here.
And the Real Estate Channel has more on Hong Kong here.

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Jack Bosch is a very interesting guy.  He came to the US from Germany a few years ago and has done a tremendous amount of land buying and selling (averaging 20 to 50 properties a month!!) And doing it very well.

The amazing thing is most of these pieces of land are not expensive, between $100 and $25,000 total.

Jack got into the real estate business with very little knowledge and chose vacant land because there was less competition there.  Well, he made a very good choice.

He didn’t have any money so he was forced to focus on very cheap pieces of land (less than $1,000 to start.) This again was a smart move because it allowed him to make his mistakes without getting in trouble financially.

He will tell you – he made lots of mistakes in the beginning.  But because the prices were small he was able to stay in the game until he got his land investment system dialed in.  (He has since ramped up his system many fold.)

Now, I will be the first to admit that Jack’s methods are agressive and they may not be for everyone.  But ask yourself,

“Is there anything I could learn from someone who has personally bought and sold over 5,000 pieces of land?”

Obviously, yes.

So no matter what type of land investments or real estate development you are doing or want to do,  you can learn something from Jack.

Jack is about to release a new product called Land Profit Generator, that teaches people how to buy and sell land quickly and profitably.  It is a system that can create a consistent income month after month.  AND it can keep you in the game while you are looking for that larger piece of  real estate you want to develop.

Well, as part of Jack’s initial push to releasing his Land Profit Generator course he is giving away a lot of solid information on buying and selling land.  (Even a great white paper on the real estate market.) It is worth your time to check it out.

You can do so by clicking the link here.

http://PropertyDevelopmentSource.com/lpg.html

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Many feel that the commercial real estate market will recover before residential – primarily because of the severity of the housing market’s problems – not due to any saving grace of the commercial sector.  And this recent Reuters article is the latest in a string of good news I have been hearing to add weight to this belief.



http://www.reuters.com/article/bondsNews/idUSN1430571420090814



The sooner money becomes more accessible, the sooner more transactions can occur.  More transactions mean more points of reference for investors and more confidence in the valuation of properties and real estate.



And in fact, I am hearing from developers who feel the time to capitalize on this opportunity is near.



It can take 2 and 3 years for any significant  real estate development project to go from land acquisition to completed sellable product.  Developers understand this long lead time and are looking for signs of turnarounds not just in their local areas but in any part of the US.  The rationale is that even if their local market is slow to bounce back, 2 or 3 years will provide ample time to “catch up” to the leading areas of the country.



So a green light in California, may be all that is needed to spur development in other parts of the U.S. as well.





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